We have 2 Walmarts here in our town. One still has fabric and the other remodeled a couple years ago got rid of their fabric dept. The Walmart that does have fabric has a small selection. My only gripe is they seldom get in new fabrics. Same fabrics day after day, year after year. They get in some seasonal fabrics but they are very poor quality. But for some reason, they have an awesome selection of flannel, especially prints.
I agree about the layaway! We have a Kmart that does layaway but I really do not like that store.